Paul,
It's not just me that will look for a strong academic background. Anybody recruiting in the software development \ research fields will generally require strong academia. If you are going for a part time job at Tescos then that PHD is probably not quite so important...
Risk of being a tad too OT but...not so. I've worked (and still do) for a variety of the largest IT and defence contractors in the world, not just the UK, as a developer, architect and consultant (all as a permie). I don't even have a Maths 'O' Level, although I have attained chartered status through the experience route! Most of my peers have degrees and doctorates but I am not alone.
However, the financial institutions are possibly more concerned about what degree you have and what university you went too. A completely misplaced concern IMHO.
I've not been to a single interview where I was asked my hobbies, neither am I interested when hiring. Track record and experience are all I'm interested in on a CV
